Nepal salary tax calculator

Questions people ask about salary tax in Nepal

How is salary tax calculated in Nepal?

Total salary for the year, less allowable deductions, is taxed slab by slab at the rates set by the Finance Act for that fiscal year. Deductions cover Social Security Fund, Employees Provident Fund and Citizen Investment Trust contributions (together capped at the lower of Rs. 500,000 and one third of salary), life insurance premium up to Rs. 40,000, and from FY 2083/84 medical insurance premium up to Rs. 20,000.

What is the 1% social security tax, and who pays it?

The first slab carries a 1% social security tax rather than income tax. An employee who contributes to the Social Security Fund is not charged it, because the contribution serves the same purpose.

What is the female rebate?

A resident female employee assessed as an individual receives a 10% rebate on the tax computed. It does not apply where the assessment is made as a couple.

Are the married slabs better than the individual ones?

Couple assessment gives higher thresholds on the lower slabs, so it usually produces a lower liability where one spouse earns most of the income. Where both spouses earn similar amounts, assessing separately can be better. The choice is an election, not an automatic result of being married.

Does this calculator file my return?

No. It estimates the liability so you can check a payroll deduction or plan for the year. Filing, and any position that depends on your particular circumstances, needs a professional review.

Rates and thresholds follow the Finance Act for each fiscal year. This is an estimate for planning, not advice on your circumstances, and does not account for foreign income, multiple employers, remote-area allowance, pension income or other reliefs. Verify before filing.